Salesforce (CRM) Q4 Earnings: What To Expect

Kayode Omotosho /
2023/02/28 2:51 am EST

Customer relationship management software maker Salesforce (NYSE:CRM) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Salesforce reported revenues of $7.84 billion, up 14.2% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.

Is Salesforce buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Salesforce's revenue to grow 9.12% year on year to $7.99 billion, slowing down from the 25.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.

Salesforce Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 0.99%.

Looking at Salesforce's peers in the sales software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. HubSpot delivered top-line growth of 27.2% year on year, beating analyst estimates by 5.3% and ZoomInfo reported revenues up 35.7% year on year, exceeding estimates by 0.93%. HubSpot traded up 11.9% on the results, ZoomInfo was down 4.76%. Read our full analysis of HubSpot's results here and ZoomInfo's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.05% over the last month. Salesforce is down 0.92% during the same time, and is heading into the earnings with analyst price target of $198.5, compared to share price of $163.23.

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The author has no position in any of the stocks mentioned.